072213 EDACITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
July 22, 2013
EDA Meeting will commence upon
adjournment of the City Council Meeting
President Kathi Hemken
Commissioner John Elder
Commissioner Andy Hoffe
Commissioner Eric Lammle
Commissioner Daniel Stauner
1. Call to order
2. Roll call
3. Approval of May 13, 2013, EDA Minutes
4. Resolution authorizing application for the Department of, Employment and
Economic Development (DEED) Redevelopment Grant by the New Hope
Economic Development Authority (project no. 911)
5. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes May 13, 2013
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development
Authority to order at 7:40 p.m.
ROLL CALL Present: Kathi Hemken, President
John Elder, Commissioner
Andy Hoffe, Commissioner
Eric Lammle, Commissioner
Daniel Stauner, Commissioner
Staff Present: Kirk McDonald, City Manager
Guy Johnson, Director of Public Works
Valerie Leone, City Clerk
Jeff Sargent, Community Development Specialist
Steve Sondrall, City Attorney
APPROVE MINUTES Motion was made by Commissioner Hoffe, seconded by Commissioner
Stauner, to approve the Regular Meeting Minutes of April 22, 2013. Voting
in favor: Hemken, Hoffe, Lammle, Stauner; Voting against: None; Abstained:
Elder; Absent: None. Motion carried
IMP. PROJECT 911 President Hemken introduced for discussion EDA Item 4, Resolution
Item 4 authorizing an interfund loan for advance of certain costs in connection with a
tax increment financing district that may be created by the city of New Hope
and the New Hope Economic Development Authority (project no. 911).
Mr. Jeff Sargent, Community Development Specialist, explained that this
action is similar to Item 8.1 approved by the City Council. He stated both
groups must approve similar resolutions as the EDA acts as a separate entity
from the City Council, and the EDA will be purchasing the property at 7940
55th Avenue North (Winnetka Learning Center site). He noted the EDA could
be reimbursed for qualified expenditures through tax increments generated
by a future TIF district which encompasses the property.
RESOLUTION 2013 -07 Commissioner Elder introduced the following resolution and moved its
Item 4 adoption "RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR
ADVANCE OF CERTAIN COSTS IN CONNECTION WITH A TAX
INCREMENT FINANCING DISTRICT THAT MAY BE CREATED BY THE
CITY OF NEW HOPE AND THE NEW HOPE ECONOMIC
DEVELOPMENT AUTHORITY (PROJECT NO. 911)." The motion for the
adoption of the foregoing resolution was seconded by Commissioner Stauner,
and upon vote being taken thereon, the following voted in favor thereof:
Hemken, Elder, Hoffe, Lammle, Stauner; and the following voted against the
same: None; Abstained: None; Absent: None, whereupon the resolution was
EDA Meeting
Page 1 May 13, 2013
declared duly passed and adopted, signed by the president which was
attested to by the executive director.
ADJOURNMENT Motion was made by Commissioner Lammle, seconded by Commissioner
Elder, to adjourn the meeting. All present voted in favor. Motion carried The
New Hope EDA adjourned at 7:42 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
EDA Meeting
May 13, 2013
Page 2
Resolution authorizing application for the Department of Employment and Economic Development (DEED)
Redevelopment Grant by the New Hope Economic Development Authority. (Project No. 911)
Requested Action
Staff requests the EDA approve the resolution of support.
Policy /Past Practice
It is a city policy and past practice to solicit EDA approval before making application for grant funds.
Background
Staff has been working with Stacie Kvilvang from Ehlers to figure out how to maximize the city's return on
the future sale of the Winnetka Learning Center. This application is for a Redevelopment Grant, and can used
to pay for costs associated with acquisition of the property and demolition of the building. The Department
of Employment and Economic Development has recently received $6 million that they will spread out over
the next couple of years through the issuances of grants, etc. The grant that New Hope is applying for is a
Redevelopment Grant, and we are seeking up to $700,000, with a $350,000 local match from the EDA. Since
the property is proposed to be purchased with EDA funds, the local match would be met. It seems
appropriate, therefore, for the EDA to be the organization pursuing the grant funds.
The application deadline for the DEED Redevelopment Grant is August 1, 2013, and the proposed resolution
needs to be approved prior to this deadline. Further information regarding this grant is attached for review.
The grants will be awarded by DEED near the end of September.
Attachment
• Resolution
® Grant Application Information
Motion by 9L �� — Second by
I: \ RFA\ COMM DEV \ Development \0 & R - EDA App for DEED
Grant 7- 22- 2013.doc
City of New Hope
EDA Resolution 2013-
Resolution authorizing application for the Department of Employment and Economic
Development (DEED) Redevelopment Grant
by the New Hope Economic Development Authority
(Project No. 911)
BE IT RESOLVED, that the Economic Development Authority of the City of New Hope ( "EDA ") acts as
the Iegal sponsor for project contained in the Redevelopment Grant Program to be
submitted on August 1, 2013 and that the Executive Director is hereby authorized to
apply to the Department of Employment and Economic Development for funding of
this project on behalf of the EDA.
BE IT FURTHER RESOLVED, that the EDA has the legal authority to apply for financial assistance, and the
institutional, managerial, and financial capability to ensure adequate project
administration.
BE IT FURTHER RESOLVED, that the sources and amounts of the local match identified in the application are
committed to the project identified.
BE IT FURTHER RESOLVED, that the EDA has not violated any Federal, State or local laws pertaining to
fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or
corrupt practice.
BE IT FURTHER RESOLVED, that upon approval of its application by the state, the EDA may enter into an
agreement with the State of Minnesota for the above referenced project(s), and that the
EDA certifies that it will comply with all applicable laws and regulation as stated in all
contract agreements.
NOW, THEREFORE BE IT FINALLY RESOLVED, that the Mayor and the Clerk, or the Executive Director,
are hereby authorized to execute such agreements as are necessary to implement the
project on behalf of the applicant.
Adopted by the Economic Development Authority of the city of New Hope, Hennepin County,
Minnesota, this 22nd day of July, 2013.
Kathi Hemken, President
Attest:
Kirk McDonald, Executive Director
FY 14
First National Bank Building
332 Minnesota Street, Suite E200
St. Paul, Minnesota 55101
Office of Brownfields and Redevelopment
651- 259 -7449
1 -800- 657 -3858
* * *YOUMUSTREAD THE FOLLOWING NARRATIVE
TO FULLY UNDERSTAND THE APPLICATION PROCESS*
PURPOSE/BACKGROUND: Because there is often no incentive for the private sector to redevelop old
industrial, residential or commercial property when undeveloped parcels of land are available, public
sector investment is required to induce private development of these difficult sites. Therefore, the
Redevelopment Grant Program was established by the 1998 legislature to assist with complex and costly
redevelopment projects that might not occur without public financial assistance. Pursuant to Minnesota
Statutes §§ 116J.571 - 116J.575, the Minnesota Department of Employment and Economic Development
(DEED) has the authority to award grants to assist development authorities with eligible redevelopment
costs as defined below. The Redevelopment Grant Program applies only to sites where there was a past
use and the need to "recycle" the land for a more productive use exists.
FUNDING AVAILABILITY: Available funding amounts vary, depending on Legislative appropriation.
According to Legislative requirement, if enough eligible applications are received, half of the grant money
will be awarded to projects outside of the seven county metropolitan area and the other half will be
awarded to projects within the seven county metropolitan area.
DEADLINES/REQUIREENTS: The Redevelopment Grant Program operates on a semi - annual
grant cycle. The next application deadline is August 1, 2013. Completed applications and supporting
documentation (3 copies) must be received by DEED's Office of Brownfields and Redevelopment by
4:00 p.. on the due date to be considered for funding. An applicant may apply for more than one
project, but an individual (separate) application must be completed for each site. NOTE: Electronic
copies will not be accepted in place of paper. Please fill out the entire application. All applications
must be complete upon submission in order to qualify for a grant. Missing items may disqualify
you from the grant round.
ELIGIBLE SITES: Redevelopment projects where there was previous development and the need to
recycle the land for a more productive use exists. Sites are only eligible where there is a change from
one developed use to another.
ELIGIBLE APPLICANTS: Eligible applicants for this program are statutory or home rule charter
cities, economic development authorities, housing and redevelopment authorities, counties, or port
authorities.
Redevelopment Page ii
FY 14
ELIGIBLE PROGRAM COSTS: The Redevelopment Grant Program can pay up to 50 percent of the
redevelopment costs for a qualifying site. "Redevelopment costs" or "costs" means the cost of land
acquisition, stabilizing unstable soils when infill is required, demolition, infrastructure improvement,
ponding or other environmental infrastructure and costs necessary for adaptive re -use of buildings
including remedial activities. Costs incurred before the grant award date are not eligible for payment.
Some examples of eligible and ineligible costs are below.
Eligible Costs
Acquisition
Demolition
Interior abatement
Infrastructure Improvements (i.e., water
and sewer, standard sidewalks, lights,
roads, etc.)
Ponding
Environmental Infrastructure
Ineligible Costs
Construction
Contingencies
Building Rehabilitation
Environmental Remediation (soil and
ground water)
Administration
Streetscape
Soft costs
ELIGIBLE BONDING AND GENERAL FUND COSTS: Currently the program is funded with both
General Funds and State Bond funds. State Bond Funds can only be used for eligible costs on publicly
owned sites and the subsequent development must be publicly owned and serve a public purpose.
State General Fund money can be used for eligible costs on privately owned land. Your application may
include eligible private and public redevelopment costs.
LOCAL MATCH REQUIREMENT: It is required that the applicant pay for at least one -half of the
redevelopment costs as a local match to obtain a redevelopment grant. The match can come from any
money available to the applicant.
Redevelopment costs incurred up to 12 months prior to the application due date can only be included as
part of the local match. These costs must meet the redevelopment costs definition (see "Eligible Program
Costs" above) and must be proven to be associated with and necessary for the redevelopment. These
prior costs should be identified in the Cost Analysis budget section of the application.
The applicant must complete and approve the attached resolution authorizing this application and
committing the local match from the applicant (see Page 13).
REQUIRED APPRAISALS OR ASSESSMENTS: Land appraisals of the current (as -is) and expected
(pre - construction) value of the site are required so that DEED can determine the fair market value and
any business subsidy. Both appraisals must be done by an independent appraiser using accepted
appraisal methodology. In lieu of an appraisal, the applicant may use the current and projected assessed
values as determined by the local assessor. Values cannot be determined in any other manner. The value
of the property after the proposed development is completed is also requested. This estimate is generally
based on similar development projects in the city.
Redevelopment Page iii
FY 14
AWARDING GRANTS: DEED will award grants to projects that provide the highest return in public
benefits for the public costs incurred and meet all of the statutory requirements. In order to evaluate the
applications for public benefits with respect to the costs incurred, the law specifies priorities that DEED
must consider.
To fulfill this requirement of reviewing applications in an objective and fair manner, the following
criteria have been assigned maximum point values in order to systematically award grants. All assigned
scores will be relative to scores awarded to other applications. Please note, an application must receive
a minimum of 50 points in order to be eligible for funding.
1. The need for redevelopment in conjunction with contamination remediation needs. Maximum = 15
points.
2. The redevelopment project meets current tax increment financing requirements for a redevelopment
district and tax increments will contribute to the project. Maximum = 25 points.
3. The redevelopment potential within the municipality. Maximum = 90 points.
4. The proximity to public transit if located in the metropolitan area. Maximum = 5 points.
5. Multi jurisdictional projects that take into account the need for affordable housing, transportation,
and environmental impact. Maximum = 15 points (5 points each).
Redevelopment Page iv